January 5, 2021
Manhattan office leasing volume decreased by 13.4% quarter-over-quarter in the fourth quarter, Colliers International reported. The two-thirds year-over-year drop in leasing capped a year which saw the lowest post-2000 activity on record.
Office investment ended the year on a relative high note. After falling the prior two quarters, volume increased to close out 2020, ending Q4 with five trades above $10 million.
“With the lowest level of leasing volume so far this century along with the highest availability on record, the COVID-19 pandemic has left a measurable impact on the Manhattan office market,” said Franklin Wallach, senior managing director, Colliers International New York Research.
He continued, “However, there were opportunities for value-seeking tenants in 2020 as rents began to adjust in pockets of the market. With the start of the COVID-19 vaccine distribution and the end of the pandemic in sight, there is the prospect of increased activity in 2021.”
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